It is a payment to shareholders, the level of which is based on the financial results of the Company for the year. It is paid to everyone who holds shares of the Company at the record date. It can be paid in cash or used to buy more Pennon Group plc shares via the Company's Dividend Reinvestment Plan (DRIP).
Pennon Group currently pays dividends twice a year, usually in April and September.
Before Pennon Group plc announces a dividend, the Company consults with the London Stock Exchange and sets the ex-dividend date which is the first day of the ex-dividend period. The ex-dividend date was created to allow a period of transactions to be completed before the record date. If an investor does not own the stock before the ex-dividend date, he or she will be ineligible for the dividend payment.
The dividend is paid based on the number of shares on the share register at the record date, which is the day following the ex-dividend date. If you receive a dividend and are not sure if you are entitled to it, you should contact the agent who sold your shares for you.
From 6 April 2016 the Government introduced a reform to the taxation of dividends. The Dividend Tax Credit was abolished and a tax free Dividend Allowance was introduced.
For dividends paid after 6 April 2016, Dividend Confirmations containing details of dividend payments have replaced dividend tax vouchers.
Before 6 April 2016 you would have received a tax voucher relating to each dividend paid to you during the tax year. If you had your dividends paid into your bank account you may have received one consolidated tax voucher per year showing all dividends that year. You could use the tax voucher to claim a 'Tax Credit' in your HMRC annual return.
You have the option of:
- having them paid direct to your bank or building society account
- electing to use them to buy more Pennon Group plc shares
- being sent a cheque to your registered address
If dividends are paid direct to your bank or building society account through the BACS system, it avoids the risk of cheques being lost in the post and your dividend will be in your account on the day the payment is made. The Registrar will send you a tax voucher to confirm the amount and to which account it has been paid.
Contact the Registrar as soon as possible and confirm which payment has been lost. They will stop the cheque and will issue a replacement. There is a charge for this depending on the value of the missing cheque.
Dividend cheques are currently valid for six months from the date of payment. After this time, the cheque(s) will be invalid and will need replacing.
If you lose your tax voucher, contact the Registrar, detailing which voucher(s) have been lost. They will issue you with duplicates on payment of an administration charge.
